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Press release from CNW Group

BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS

Friday, May 13, 2011

BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS08:00 EDT Friday, May 13, 2011Record Quarter of Production and Financial ResultsCALGARY, May 13 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2011 first quarter Financial and operational results. The complete reporting package, consisting of Management's Discussion and Analysis along with Financial Statements and Notes, is posted on the Company's website www.bankerspetroleum.com and SEDAR: www.sedar.com.Results at a Glance (US$000,except as noted)(3)  Three months endedMarch 31  Three months endedDecember 31                   2011  2010  Change  2010  ChangeOil revenue  72,736  35,149  107%  50,945  43%Net operating income  39,834  15,639  155%  25,465  56%Net income (loss)  11,219  (363)  32 x  4,630  142%Funds generated from operations(1)  30,259  13,814  119%  23,292  30%Capital expenditures  51,930  26,170  98%  37,367  39%Average production (bopd)  11,894  8,282  44%  10,424  14%Average price ($/barrel)  67.95  47.16  44%  53.12  28%Netback ($/barrel)  37.22  20.98  77%  26.55  40%                   March 312011  March 312010  Change  December 312010  ChangeCash and deposits  82,854  67,712  22%  108,119  (23%)Adjusted working capital(2)  111,382  70,626  58%  134,934  (17%)Total assets  522,476  329,036  59%  465,598  12%Bank loans  20,416  26,418  (23%)  25,829  (21%)Shareholders' equity  371,355  226,882  64%  346,267  7%                (1)     Includes $6.6 million cash premiums paid for financial commodity contracts.(2)     Represents working capital net of current portion of long-term debt.(3)     Effective January 1, 2011, and retroactive to January 1, 2010, the Company adopted International Financial Reporting Standards (IFRS). Previously, the Company prepared its Financial Statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). The transition has not resulted in any material variation from prior periods. Full details on the transition adjustments are contained in the Notes to the Consolidated Interim Financial Statements.Highlights for the quarter ended March 31, 2011 are:Bankers achieved record production during the three months ended March 31, 2011. Production averaged 11,894 bopd, an increase of 44%, compared to the same period in 2010. Production at the end of March 31, 2011 exceeded 13,500 bopd.Revenue increased 107% to $72.7 million ($67.95/bbl) in the first quarter of 2011 from $35.1 million ($47.16/bbl) during the first quarter of 2010.Net operating income (netback) increased 155% to $39.8 million ($37.22/bbl) in the first quarter of 2011 from $15.6 million ($20.98/bbl) during the first quarter of 2010.Funds generated from operations increased 119% to $30.3 million in the first quarter of 2011 from $13.8 million over the first quarter of 2010. Included in funds generated from operations are cash premiums paid of $6.6 million for financial commodity contracts in February 2011.Capital expenditures for the first quarter of 2011 were $51.9 million and included drilling 16 wells, 29 reactivation and related infrastructure/expansion projects. During the comparable 2010 quarter, capital expenditures were $26.2 million.The Company continues to maintain a strong balance sheet adjusted working capital of $111.4 million (including cash and cash equivalents totalling $82.9 million) and bank loans of $20.4 million. At December 31, 2010 the Company had adjusted working capital of $134.9 million and bank loans of $25.8 million. Adjusted working capital at March 31, 2010 was $70.6 million.ANNUAL GENERAL MEETINGThe Company's Annual General Meeting (AGM) will take place on May 24, 2011 at 3:00pm MDT (5:00pm EDT) at the Petroleum Club in Calgary, AB, Canada.For additional information, please see an updated version of the Company's corporate presentation on www.bankerspetroleum.com.BANKERS PETROLEUM LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION(Unaudited, expressed in thousands of USdollars)                 ASSETS        March 312011   December 312010   January 12010Current assets                 Cash and cash equivalents       $81,354  $106,619    $59,495 Short-term investments       -   -   7,275 Restricted cash       1,500   1,500   1,500 Accounts receivable       48,063   29,233   23,358 Inventory       15,890   4,199   2,031 Deposits and prepaid expenses       15,265   16,624   5,899        162,072   158,175   99,558Non-current assets                 Note receivable       -   -   2,749 Deferred financing costs       13,589   13,980   15,824 Financial commodity contracts       5,187   -   - Property, plant and equipment       341,628   293,443   187,924Total assets      $522,476  $465,598  $306,055                 LIABILITIESCurrent liabilities                 Accounts payable and accrued liabilities      $50,690  $23,241    $19,505 Current portion of long-term debt       18,565   4,014   4,639        69,255   27,255   24,144Non-current liabilities                 Long-term debt       1,851   21,815   23,446 Decommissioning obligation       6,871   6,622   4,796 Deferred tax liabilities       73,144   63,639   38,892Total liabilities       151,121   119,331   91,278                 SHAREHOLDERS' EQUITYShare capital       314,456   309,379   206,058Warrants       1,597   1,597   1,739Contributed surplus       35,113   28,135   16,443Accumulated other comprehensive income       7,908   6,094   -Retained earnings (deficit)       12,281   1,062   (9,463)        371,355   346,267   214,777       $522,476  $465,598  $306,055BANKERS PETROLEUM LTD.CONSOLIDATED STATEMENTSOF COMPREHENSIVE INCOMEFOR THE THREE MONTHS ENDED MARCH 31(Unaudited, expressed in thousands of US dollars, except per share amounts)                                   2011   2010                       Revenues            $   72,736    $   35,149Royalties              (13,755)      (7,190)               58,981      27,959                       Operating expenses                11,597      7,925Sales and transportation expenses                7,550      4,395General and administrative expenses                2,858      2,456Depletion and depreciation                8,265      4,384Amortization of deferred financing costs                734      683Share-based payments                4,645      3,704Unrealized loss on financial commodity contracts              1,401      -               37,050      23,547               21,931      4,412                       Finance income              307      727Finance expense              (1,514)      (753)               (1,207)      (26)                       Income before income tax               20,724      4,386Deferred income tax expense              (9,505)      (4,749)Net income (loss) for the period              11,219      (363)                       Other comprehensive income                       Currency translation adjustment              1,814      1,444Comprehensive income for the period          $   13,033  $   1,081                       Basic earnings (loss) per share          $   0.046  $   (0.002)                       Diluted earnings (loss) per share          $   0.044  $   (0.002)BANKERSPETROLEUMLTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(Unaudited, expressed in thousands of US dollars, except number of common shares)      Number ofcommonshares   Share capital   Warrants   Contributedsurplus   Accumulatedothercomprehensiveincome   Retainedearnings(deficit)   TotalBalance at January 1, 2010     228,272,165    $  206,058    $  1,739  $  16,443  $  -  $  (9,463)  $  214,777                                           Share-based payments       -     -     -     6,608     -     -     6,608Options exercised     1,035,222     2,759     -     (952)     -     -     1,807Warrants exercised     1,033,334     2,724     (115)     -     -     -     2,609Net loss for the period     -     -     -     -     -     (363)     (363)Currency translation adjustment     -     -     -     -     1,444     -     1,444Balance at March 31, 2010     230,340,721     211,541     1,624     22,099     1,444     (9,826)      226,882                                           Issue of common shares     12,903,228     96,153     -     -     -     -     96,153Share issue costs     -     (4,333)     -     -     -     -     (4,333)Share-based payments       -     -     -     7,876     -     -     7,876Options exercised     1,307,108     5,361     -     (1,840)     -     -     3,521Warrants exercised     243,933     657     (27)     -     -     -     630Net income for the period     -     -     -     -     -     10,888     10,888Currency translation adjustment     -     -     -     -     4,650     -     4,650Balance at December 31, 2010     244,794,990     309,379     1,597     28,135     6,094     1,062     346,267                                           Share-based payments     -     -     -     8,925     -     -     8,925Options exercised     1,963,444     5,077     -     (1,947)     -     -     3,130Net income for the period     -     -     -     -     -     11,219     11,219Currency translation adjustment     -     -     -     -     1,814     -     1,814Balance at March 31, 2011     246,758,434   $  314,456  $  1,597  $  35,113  $  7,908  $  12,281  $  371,355BANKERS PETROLEUM LTD.CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE THREE MONTHS ENDED MARCH 31(Unaudited, expressed in thousands of US dollars)                         2011   2010Cash provided by (used in):                 Operating activities                  Net income (loss) for the period     $   11,219  $   (363) Depletion and depreciation         8,265      4,384 Amortization of deferred financing costs         734      683 Finance expenses (including accretion)         1,514      753 Interest paid         (310)      (165) Foreign exchange (gain) loss         (126)      69 Deferred income tax expense         9,505      4,749 Share-based payments         4,645      3,704 Unrealized loss on financial commodity contracts         1,401      - Cash premiums paid for financial commodity contracts         (6,588)      -          30,259      13,814Change in non-cash working capital         (8,012)      (1,678)          22,247      12,136Investing activities                  Additions to property, plant and equipment         (51,930)      (26,170) Change in non-cash working capital         5,988      5,022          (45,942)      (21,148)Financing activities                  Issue of shares for cash         3,130      4,416 Short-term deposits         -      (1,800) Financing costs         (26)      (152) Decrease in long-term debt         (5,413)      (1,667)          (2,309)      797Foreign exchange gain on cash and cash equivalents          739      857Decrease in cash and cash equivalents         (25,265)      (7,358)Cash and cash equivalents, beginning of period         106,619      59,495Cash and cash equivalents, end of period      $   81,354  $   52,137Caution Regarding Forward-looking Information Information in this news release respecting matters such as the expected future production levels from wells, future prices and netback, work plans, anticipated total oil recovery of the Patos Marinza and Kuçova oilfields constitute forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.  Exploration for oil is a speculative business that involves a high degree of risk. The Company's expectations for its Albanian operations and plans are subject to a number of risks in addition to those inherent in oil production operations, including: that Brent oil prices could fall resulting in reduced returns and a change in the economics of the project; availability of financing; delays associated with equipment procurement, equipment failure and the lack of suitably qualified personnel; the inherent uncertainty in the estimation of reserves; exports from Albania being disrupted due to unplanned disruptions; and changes in the political or economic environment.Production and netback forecasts are based on a number of assumptions including that the rate and cost of well takeovers, well reactivations and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompletions/reactivations/development in the past; continued availability of the necessary equipment, personnel and financial resources to sustain the Company's planned work program; continued political and economic stability in Albania; approval of the Addendum to the Plan of Development;  the existence of reserves as expected; the continued release by Albpetrol of areas and wells pursuant to the Plan of Development and Addendum; the absence of unplanned disruptions; the ability of the Company to successfully drill new wells and bring production to market; and general risks inherent in oil and gas operations. Contingent resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Prospective resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations, by application of future development projects. Forward-looking statements and information are based on assumptions that financing, equipment and personnel will be available when required and on reasonable terms, none of which are assured and are subject to a number of other risks and uncertainties described under "Risk Factors" in the Company's Annual Information Form and Management's Discussion and Analysis, which are available on SEDAR under the Company's profile at www.sedar.com.There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information and forward-looking statements.Review by Qualified PersonThis release was reviewed by Abdel F. (Abby) Badwi, President & CEO of Bankers Petroleum Ltd., who is a "qualified person" under the rules and policies of AIM in his role with the Company and due to his training as a professional petroleum geologist (member of APEGGA) with over 40 years experience in domestic and international oil and gas operations. About Bankers Petroleum Ltd.Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and production company focused on developing large oil and gas reserves. In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Kuçova oilfield, and a 100% interest in Exploration Block F. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.   For further information: Abby Badwi         President and Chief Executive Officer           (403) 513-2694 Doug Urch         Executive VP, Finance and Chief Financial Officer         (403) 513-2691 Mark Hodgson         VP, Business Development            (403) 513-2695 Email: investorrelations@bankerspetroleum.com Website: www.bankerspetroleum.com AIM NOMAD:                Canaccord Genuity Limited               Ryan Gaffney/ Henry Fitzgerald-O'Connor               +44 20 7050 6500                               AIM JOINT BROKERS:               Canaccord Genuity Limited                   Macquarie Capital Advisors Ryan Gaffney/ Henry Fitzgerald-O'Connor                 Ben Colegrave/Paul Connolly +44 20 7050 6500                    +44 20 3037 5639